<DrumBeat: January 2, 2007The Oil DrumBeginnings of UK “Oil Age”>

15 comments on Gazprom, Russian plans and that niggling worry...

Comments can no longer be added to this story.

DingyWhite on January 2, 2007 - 9:19pm Permalink | Subthread | Parent | Comments top

The export duty is only part of the problem. Another part is oil extraction tax. This tax is based on the international price of oil but must be paid even on the amount sold internally at much lower price. So, the more the international price of oil, the less profitable is internal sales. Many old wells are abandoned due to this problem.

0
Comments can no longer be added to this story.
GreyZone on January 3, 2007 - 12:14pm Permalink | Subthread | Parent | Comments top

I believe Putin did say over the last few years that taxes and tariffs would be adjusted to ensure that Russia always had enough oil "for home use" versus export. The Kremlin is attempting to manage its resource base, though we might not like how they are doing it.

0
Comments can no longer be added to this story.